Prague office market faces shortage of high-quality space

The Prague office market is experiencing a shortage of high-quality space, with vacancy rates dropping to 5.8%, the lowest level since 2020. According to a Colliers survey, approximately 70% of market demand is currently driven by the renegotiation of existing leases due to a lack of available alternatives. While over 309,000 square meters of office space are under construction, roughly 58% of this is already pre-leased, often to major entities like Česká spořitelna and ČEZ.

In response to changing business needs, the market is seeing a distinction between physical coworking spaces and virtual offices. Data from the MojeSidlo group indicates that demand for virtual offices—which provide registered addresses and mail management without physical presence—is growing independently of the physical office market. This trend caters to entrepreneurs working remotely or from abroad who require administrative freedom rather than physical desks or meeting rooms.